VAT Guide for Freelancers in Slovakia

If you have clients in Slovakia, you are required to comply with Slovakian VAT rules regardless of where you’re based. Being part of the European Union, Slovakia follows the EU’s VAT directives; although, locally VAT is administered by the Finančná správa, Slovakia’s tax agency.  

Slovakia’s standard VAT rate is set at 20% and the annual registration threshold for freelancers is set at EUR 49,790. If you are a freelancer in Slovakia and are confused by VAT and the rules surrounding it, you're in the right place. Here at Xolo, we want to answer all your VAT-related queries. We also offer a range of VAT-related services designed to match your specific needs. 

This guide includes everything you, as a freelancer, need to know about VAT in Slovakia. Let's get started!

VAT Rates in Slovakia

What are the different VAT rates in Slovakia? The Slovakian government levies two different VAT rates, and freelancers must charge the amount that applies to their products and services.

    • Standard VAT Rate of 20%  – applied to the supply of almost all goods and services, unless they fall under the reduced VAT rate or zero-rate categories.
    • Reduced VAT Rate of 10% – applied on certain goods and services such as the sale of certain food products, medical equipment for disabled people, pharmaceutical products, hotels and accommodation, books except for e-books, specific newspapers, etc.
  • Zero Rate (0%) - Although there are no charges involved, you should record sales of goods and services and create a report based on your returns.

What goods and services are exempted from VAT in Slovakia?

  • Healthcare Services
  • Financial Services
  • Social welfare
  • Cultural Services
  • Insurance Services – insurance and reinsurance
  • Lotteries
  • Education
  • Real Estate transfer and lease
  • Sports and PE services
  • Public broadcasting related services
  • Postal Services

Registering for VAT in Slovakia

Who is required to register for VAT in Slovakia? When should you register for VAT? We’ve got all your answers right here.

You have to register for VAT if you:

  • Carry out any type of economic activity, regardless of the results and purpose of such an activity, within the Slovak Republic.
  • Have an annual turnover that equals to or exceeds EUR 49,790. This is the VAT registration threshold. 

You must ensure that you file an application for VAT registration within 20 days of the month following the month you have exceeded the threshold. If your annual turnover is less than EUR 49,790, you are not required to register for VAT; however, you have the liberty to do so voluntarily.  

How to register for VAT?

You must submit the following documents to the Tax Authority Bratislava:

  • A completed VAT registration application form
  • An original extract or a notarized copy from the Commercial Register 
  • An official translation of the extract into the Slovak language, from the Commercial Register

You can submit these documents either online or in person at your local tax office. Post registration, you will receive a tax identification number required for all your tax-related activities. 

Alternatively, you can sign up for the EU’s MOSS system. The Mini One-Stop Shop is an EU-wide tax system that allows you to consolidate your VAT in one single tax return. This scheme is especially useful if you have customers in multiple countries within the EU. MOSS allows you to avoid registering in each Member State of consumption. To learn more, click here.

Lastly, you can hire an accountant or agency to handle your VAT returns and dealings with the tax office. We provide services like Xolo Go and Xolo Leap, which help with precisely this and any other VAT concerns you may have.

VAT Returns and Payment 

The amount of VAT you must pay is derived after subtracting the VAT you charged your customers from the VAT you paid on purchasing materials for your goods or services. Therefore, if the VAT you paid is more than what you charged your customers, the difference can serve as VAT credit and be offset against your VAT liability in the following tax period. 

Once you register for VAT, you must also complete the following:

  • Issue a VAT Invoice for each of your VAT-taxable transactions, in compliance with the VAT Law, not later than 15 days from the date of supply of goods or services.
    • These invoices can be sent electronically, subject to approval by the acquirer of your goods or services.
  • File your VAT returns monthly and request a quarterly filing if your annual turnover is less than EUR100,000. 
    • The VAT returns are required to be filed via a standard electronic form issued by the Ministry of Finance. 
  • File your VAT returns and make your VAT payments within 25 days from the end of the tax period (calendar month or quarter).

Don’t worry if the process seems overwhelming, Xolo’s got your back! We automatically generate, send, and store all your invoices and documents for you, so you won’t have to worry about missing any steps or misplacing any documents ;) 

VAT for Expat Freelancers in Slovakia

If you are an expat freelancer in Slovakia, you must complete your VAT registration with the Slovakian tax authorities in Bratislava before you commence any form of taxable supply of goods and services. 

Slovakia does not require you to appoint a fiscal representative to carry out the VAT registration or compliance procedures. However, you have the liberty to appoint a tax representative to act on your behalf in front of the Slovak tax authorities.

You are required to file your VAT returns and make your VAT payments within 25 days from the end of the tax period (calendar month or quarter, only if you are obliged to pay tax in that given period.

If you’re still confused, Xolo can help you register as a freelancer in Slovakia and handle all the necessary paperwork on your behalf. With Xolo Go, you can use a slice of our company as a legal framework to invoice your clients whether they're in Slovakia or beyond.

How Xolo Can Help?

Learning all the Slovakian tax guidelines can be challenging, especially if you’re a sole proprietor in charge of several aspects of your business. Luckily, at Xolo, we offer a range of solutions that can handle all the paperwork and legal jargon, allowing you to focus on your core competencies.

Xolo Go is a quick and efficient way for freelancers who may or may not have a registered LLC or sole proprietorship to invoice clients legally. 

  • Signing up takes only 10 minutes, and once you do, taxation, corporate compliance, and all the tricky VAT calculations are all automatically taken care of in the background!
  • We charge a flat rate of 5% from every withdrawal to your personal bank account. No surprise fees, no contracts, and no BS.

Xolo Leap is the easiest and most effective way to create your own company through Estonian e-Residency! Reduce time spent on mundane business administration and focus on what you do best!

  • We offer different tiers of service depending on the solopreneur's (or as we call them, Xolopreneur's) individual needs.
  • Once you get your business set up with Xolo Leap, you can literally run it from anywhere in the world! So whether you’re a freelancer looking to gain access to the EU market or a digital nomad who can’t be tied down - this is the place for you! 

So connect with us immediately, and we’ll help you get your one-person business up and running in Slovakia in no time!